The car offers freedom and almost unlimited mobility; we can jump into its comfortable, upholstered seats at any time, day or night, and be transported over a sophisticated network of roads to wherever we wish. We love our cars; they come with us on holiday, rush us to work, ferry the kids to school and carry our shopping. In return we lavish money on them, feed them on demand, wash them, keep them clean and make sure they stay in good health.
However, the cost of running a family car is becoming increasingly more expensive and has risen to almost £2,200 a year. That’s a 56 per cent increase since 1997, according to a comprehensive analysis of the rising expenses of everyday living.
It now costs an average of £2,197 to maintain, service, insure, tax and fuel most vehicles, compared with £1,409 just ten years ago. The prices of petrol and oil alone have risen by 52.6 per cent in just over a decade.
The combined additional costs of car finance, such as MOT tests, car parking fees, road tolls, driving test fees and vehicle hire, are up 17.1% since 1997. The cost of fuels and lubricants rose the highest – by 41.6% between 1997 and 2007 – according to figures from the Society of Motor Manufacturers and Traders.
The cost of car components rose well above the retail price index (RPI) – the domestic inflation benchmark. Between 1997 and 2007, they rose by 29.7%, while the RPI increased by 17.6%. During the first half of the year, the cost of maintenance and repairs increased by 6.4% - 4.3% higher than the RPI for the same period.
But, according to a separate survey from Market Facts and Business Information (MFBI), mechanics are earning more but doing less work. Increased labour rates, for work done on cars, partly account for the increase, and more sophisticated on-board technology will continue to push prices upwards. Labour rates have risen from £29.58 per hour in 1995 to £37.08 in 2006, but mechanics are doing 25% less work. They make most of their money through servicing - on average 28.8% profit – compared to 19.5% in body shops.
Servicing your car at a franchised dealer is a third more expensive (35%) than having your car repaired at an independent dealer, according to the MFBI survey. Exclusive dealer networks charge an average of £176 compared to £130 at an independent garage. Critics say that franchised dealers are virtually running a monopoly through warranty period servicing; about 70% of new car owners use a franchised dealer, compared to only 20% with used cars. When warranty periods expire, the majority of car owners go to independent garages.
Everything from fuel charges to garage bills is pushing up the cost of running a car to a new high, and in the wake of soaring oil prices, you could be forgiven for thinking that filling your car’s petrol tank has never been more expensive.
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